regulation, recovery and resolution, and risk culture. …

regulation, recovery and resolution, and risk culture. …

The regulatory use of banks' internal models makes capital requirements more risk-sensitive but invites regulatory … arbitrage. I develop a framework to study bank regulation with strategic selection of risk models. A bank supervisor can … discourage arbitrage by auditing risk models, and implements capital ratios less risk-sensitive than in the first-best to reduce …

additional aspect of necessary orchestration has emerged, that is the need to control systemic risk. Specific attention is paid …

regulatory equity and the increasing reliance on banks’ internal risk models for the determination of risk weights. The first … trend has been reversed with the regulatory reforms following the financial crisis. Internal risk models will still play a … central role. The rest of the paper focuses on the problems with the use of internal risk models for regulatory purposes. The …

We study the relationship between banks' size and risk-taking in the context of supranational banking supervision …

Recent regulations of risk governance call for more outsiders on bank boards. We study how these affect bank risk … taking (according to regulatory, economic, and tail risk measures) as well as board monitoring (CEO turnover) for 724 U ….S. bank holding companies (BHC) from 2000 to 2019. We document that outsiders improve risk governance (decrease risk taking …

We show that banks' risk exposure in one asset category affects how they report regulatory risk weights for another … asset category. Specifically, banks report lower credit risk weights for their loan portfolio when they face higher risk … constraints. Our results suggest the existence of incentive spillovers across different risk categories. We relate this behavior …